New York Governor Proposes Pied-à-Terre Tax

Hochul's plan targets luxury second homes in the city.

Apr. 15, 2026 at 8:37pm

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A photorealistic painting of a tall, stately apartment building in New York City, with warm sunlight streaming through the windows and deep shadows across the facade, conveying a sense of solitude and nostalgia.Hochul's proposed pied-à-terre tax aims to capture revenue from luxury second homes that often sit vacant in New York City.NYC Today

After months of resisting calls to raise taxes on the wealthy, New York Governor Kathy Hochul is now proposing a new tax on pricey pied-à-terre properties - luxury second homes in the city that are often left vacant.

Why it matters

This proposal represents a shift in Hochul's stance and could signal a willingness to compromise with progressive lawmakers who have pushed for higher taxes on the affluent. The pied-à-terre tax is seen as a way to generate revenue from properties that are not primary residences.

The details

Under Hochul's plan, owners of pied-à-terre properties valued at over $5 million would be subject to an annual tax. The goal is to capture revenue from luxury second homes that are often left vacant, rather than targeting primary residences.

  • Hochul has resisted calls for higher taxes on the wealthy for months.
  • The governor is now pitching the pied-à-terre tax as a compromise.

The players

Kathy Hochul

The current Governor of New York.

Progressives

Lawmakers and activists who have pushed Hochul to raise taxes on the wealthy.

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What they’re saying

“We must find a balanced approach that doesn't overly burden our residents, but also generates the revenue we need to invest in our communities.”

— Kathy Hochul, Governor of New York

What’s next

The pied-à-terre tax proposal will now need to be negotiated with the state legislature.

The takeaway

Hochul's shift on taxing the wealthy shows a willingness to compromise, though the details of the pied-à-terre tax plan will likely face scrutiny from both sides of the aisle.